Ao World Plc · LSE:AO.
Ao World — Investor Day (September 2015)
56 slides from Ao World's investor day presentation, Sep 21, 2015
Slide 1: AO World plc Capital Markets Day
AO World plc Capital Markets Day Bolton Head Office and Crewe National Distribution Centre 21st September 2015
Slide 2: Today's Programme
Today’s Programme Introduction John Roberts Interactive update Split in to groups Vision and category update John Roberts Trading update Mark Higgins Brand Andrew Kirkcaldy Germany Kevin Monk Q&A Lunch Group executive team Travel to Crewe Logistics Dave Ashwell Warehouse tour Split in to groups Q&A
Slide 3: Strategy at IPO
February 2013 Strategy at IPO 1. Continue to grow UK MDA business 2. Develop UK SDA 3. Launch new category AV 4. Roll UK categories to Germany and surrounding countries. 3
Slide 4: Key messages today
Key messages today Long term strategy Brand 4
Slide 5: Interactive update
Interactive update 5
Slide 6: Today's Speakers
Today’s Speakers John Roberts Mark Higgins CEO CFO Kevin Monk Andrew Kirkcaldy Dave Ashwell Group International Group Brand Director Group Logistics Director Director 6
Slide 7: Vision and category update
Vision and category update 7
Slide 8: AO Vision
AO Vision What? BIG HAIRY AUDACIOUS GOAL: We will become the best electrical retailer in Europe How? CORE PURPOSE: Being exceptional in the moments that matter Why? Core Values: We care more 8
Slide 9: MDA Market in countries surrounding Germany
MDA Market in countries surrounding Germany Germany Sweden Population 81.9m Population 9.5m Population Density(1) 234.7 Population Density(1) 23.0 MDA Market Size(2)(3) £6.6bn MDA Market Size(2)(3) £0.9bn Online Penetration(3) 14% Online Penetration(3) 13% Denmark Poland Population 5.6m Population 3
Slide 10: Further addressable markets – in total a £40bn+ opportunity
Further addressable markets – in total a £40bn+ opportunity Germany Sweden TV Market Size £4.8bn TV Market Size £0.5bn SDA Market Size £2.4bn SDA Market Size £0.3bn Home Audio & Cinema Home Audio & Cinema £1.0bn £0.1bn Market Size Market Size Denmark Poland TV Market Size £0.4bn TV Market Size £1.0b
Slide 11: AV Category
AV Category Internal control – Brand (customer & culture) Content Traffic / Delivery People / Customers Proposition Learn Launch AV Best electrical Category – May retailer in Europe 2014 Range Margin External negotiation- Brand (revenue & offering) 11
Slide 12: SDA Category
SDA Category Internal control – Brand (customer & culture) Content Traffic / Delivery People / Customers Proposition Learn Launch SDA Best electrical Category – June retailer in Europe 2013 Range Margin External negotiation- Brand (revenue & offering) 12
Slide 13: UK revenue growth, brand journey, German progress
Mark – UK revenue growth & brand Andrew – Our brand journey Kevin – German progress leveraging internal brand 13
Slide 14: Mark Higgins CFO
Mark Higgins CFO 14
Slide 15: Expected Q2 Revenue Growth
Expected Q2 Revenue Growth UK revenue growth UK ao.com revenue 20% - 21% year on growth +30% year year on year 15
Slide 16: Other progress
Other progress Accelerated UK brand investment Encouraged by development of German business 16
Slide 17: Brand and Customer – Andrew Kirkcaldy
Brand and Customer Andrew Kirkcaldy Group Brand Director 17
Slide 18: The AO perspective of a brand
The AO perspective of a brand 18
Slide 19: Team structure
Team structure Brand Consumer Employer People Brand Brand Internal Advertising HR Comms PR & Comms Corporate PR Development Content Content Recruitment Marketing Marketing Social Media Advertising Engagement 19
Slide 20: Getting culture front and centre
Getting culture front and centre 20
Slide 21: Our Values
Our Values Caring – Genuine people make the difference You can’t pay people to care. Driven – We are relentless We deliver what others can’t. We don’t give up and do whatever it takes. Smart – We find the best way We are smart through understanding and innovation. Bold – We have the courage to try W
Slide 22: Embedding our values in everything we do
Embedding our values Embedding our values in ‘everything we do’ Recruitment Induction Performance | Development Engagement Office Environment Internal Communication 22
Slide 23: AO Vision
AO Vision What? BIG HAIRY AUDACIOUS GOAL: We will become the best electrical retailer in Europe How? CORE PURPOSE: Being exceptional in the moments that matter Why? Core Values: We care more 23
Slide 24: Consumer Brand
Consumer Brand 24
Slide 25: Brand awareness and market share
• In February 2015 AO.com had higher market share than brand awareness • We are simplifying the message and how we communicate to consumers • We are creating consistency across all customer touch points & channels • We need more consumers to be aware of us 25
Slide 26: Brand agency review
Brand agency review 26
Slide 27: Brand world
Sponsorships cal Call Centre oe Digital Display 3° ae Recommend a Friend . Socia Print ince = VOD SMS Mobile R adi ‘0 Social Advertising Driv Bag BRAND WORLD Word of Links mouth Content influencers Marketing engagement PR Mentions Earned
Slide 28: Let customers tell the story
Let customers tell the story 28
Slide 29: Social Media engagement
Social Media engagement ao ed ip 4 tl : S
Slide 30: Fueling customer recommendations
Fueling customer recommendations 30
Slide 31: Customer centric content
Save up to £400 on selected sound & vision Exceptional cleaning, whisper quiet Whisper quiet operation meets exceptional cleaning power. This Miele vacuum offers high suction power, low energy consumption and an XL capacity. Check out our video, and see the benefits for yourself! Cutting-edge tech .
Slide 32: Destination for content & advice
Destination for content & advice 32
Slide 33: Destination for content & advice
Destination for content & advice 33
Slide 34: PR / Content Marketing - Grow brand awareness & recover SEO
PR / Content Marketing - Grow brand awareness & recover SEO “Focus on the user and all else will follow.” Google 34
Slide 35: PR / Content Marketing - Grow brand awareness & recover SEO
PR / Content Marketing - Grow brand awareness & recover SEO 35
Slide 36: PR / Content Marketing - Grow brand awareness & recover SEO
PR / Content Marketing - Grow brand awareness & recover SEO 36
Slide 37: Key Focus on Growing Awareness
Key Focus on Growing Awareness • Making good progress • Current activity working well for UK and Germany • Accelerating investment in – TV advertising – PR & Content Marketing – Other above the line activity • Investing for the medium / long term brand build 37
Slide 38: Kevin Monk Group International Director
Kevin Monk Group International Director 38
Slide 39: Ao.de
Ao.de • Introduction • Ao.de Business • Ao.de Structure • Highlights from our first year • Bergheim • Leveraging our assets across Europe
Slide 40: Ao.de Business
Ao.de Business • Started Trading 1st October 2014 • Located in Heppendorf & Bedberg • One Hub – 4 outbases • Delivering 6 days a week • Currently 365 employees
Slide 41: Ao.de Management Structure
Ao.de Management Structure • Dual Horizontal and Vertical Structure • Local day to day operational and tactical control to react fast • Best practice and strategic direction run through group • Matrix management structure works through strength of culture across Group Executive Team Kevin Monk AO Wo
Slide 42: Gaining Manufacturer Support
Gaining Manufacturer Support Internal control – Brand (customer & culture) Content Traffic / Delivery People / Customers Proposition Learn Launch ao.de – Best electrical October 2014 retailer in Europe Range Margin External negotiation- Brand (revenue & offering)
Slide 43: Market Leading Service
Market Leading Service • Reference Trusted shops and Trust pilot and idealo
Slide 44: Television Adverts
ao - VU Television Adverts
Slide 45: Bergheim Ground-Breaking
ao VU Bergheim Ground-Breaking
Slide 46: Bergheim
Bergheim
Slide 47: Leveraging Bergheim
ao : wr Leveraging Bergheim {Hs hy +S Y } Rostock ; Fd) og ) roa { “= sdezeein ow IR ee “By Hanover 4 Poznan gy Se aot an SE r The Haguec y Brunswi ; <= - v.< ! x : _ .Dresden-;- a Wroclaw ts \ ee a ¥ Eeggue y 4 Czech Republic Sh \ Nuremberg burg y ! " Nate, (e pS, Austria DS Tonabiek : AG ee) i cht
Slide 48: Introducing the rest of the Executive Team
Introducing the rest of the Executive Team Steve Caunce Danny Emmett COO Group Retail Operations Director Dave Lawson John Coulter Group Ecommerce Group Trading Director Director 48
Slide 49: Dave Ashwell Group Logistics Director
Dave Ashwell Group Logistics Director 49
Slide 50: Outbases 2014
Se Outbases 2014 VJ : 50
Slide 51: Outbases 2015
SF Outbases 2015 VJ : 5 of 4 5 Z a OD pak af! Cygne < a a ce) a“ ant 0 sree 51
Slide 52: Additional Warehousing
ao Additional Warehousing 7 ” y itby Morrisons as Sh oW, . » * plueell Miccend 4 MN Expertifogistics - Appliances Onling rember rans} y~s “ , -
Slide 53: Additional Warehousing
ao Additional Warehousing A 2165 SEAT SEA ad’Service Centre ~.* Expertifogistics - Appliances Onling rember rans} ; ss - ss, -
Slide 54: Drivers
Drivers • Challenges – Ageing – New legislation • Solutions – Driver academy 54
Slide 55: Fleet
Fleet • The fleets we now run – 7.5t • Core • ao – 3.5t • Driver academy • Double run – Premium install – Same day 55
Slide 56: The past months
The past 18 months….. • Pick and pack • Changing client mix • Changing product mix • System enhancements • New trailers 56